China’s Henan Province invests in air logistics

World
Europe

Henan, an inland province in central China, is traditionally known for its big population and agriculture-based economy.

But in a recent bid by the central government to develop the province into a domestic transportation hub and a major transit node along the "Belt and Road", the once landlocked province is rapidly opening up.

Zhengzhou, the provincial capital, boasts the first economic zone in China that was built around an airport.

Approved by the State Council in 2013, a Zhengzhou Airport Economy Zone (ZAEZ) measuring 415 square kilometers in area was constructed around Zhengzhou International Airport.

Foxconn, a contract manufacturer for Apple, which has produced and exported half of the world’s iPhone devices from Zhengzhou since 2010, now operates a factory in ZAEZ.

In a more recent strategic move in 2014, Henan Civil Aviation Co Ltd, a state-owned Chinese enterprise, bought a 35-percent share in Luxembourg’s Cargolux Airline, the largest all-cargo airline in Europe.

The partnership soon proved its worth as regular flights to and from Zhengzhou operated by Cargolux increased from twice a week to 16, with extra chartered flights during peak seasons.

Thanks to Zhengzhou and Luxembourg’s respective strengths as transportation hubs in China and Europe, Cargolux now is the largest contributor to Zhengzhou International Airport’s cargo handling capacity, accounting for an estimated 140,000 tonnes in 2017 alone.

A Cargolux freighter being unloaded. /CGTN Photo

The China-proposed Belt and Road Initiative provided further impetus to Henan’s transformation.

During Luxembourg Prime Minister Xavier Bettel’s visit to China in June 2017, Chinese President Xi Jinping said China supports a Silk Road in the air between Luxembourg and Zhengzhou.

Jack Yuan, vice-president of Henan Civil Aviation’s Luxembourg project management office, said the company’s next step is to operate passenger flights between Luxembourg and Zhengzhou.

Yuan added that by building an air logistics eco-system and developing supply chain finance, Henan could attract more resources such as high-end manufacturing, service industry, finance and insurance companies so as to upgrade the regional industrial structure.